Southern real estate market: Transaction volume improves

On October 11, DKRA Consulting (DKRA Group) reported on the real estate market in Ho Chi Minh City and surrounding areas in the third quarter of 2024. The report showed remarkable figures about the real estate market in the South.

Specifically, in the third quarter, the real estate market in Ho Chi Minh City and its surrounding areas recorded 108 apartment projects providing more than 13,400 products, down 17% compared to the same period last year. The consumption rate reached nearly 2,700 units, down 39% compared to the same period last year. The consumption rate was equal to 20% of the total supply.

According to DKRA Consulting, transactions are mainly concentrated in mid-range projects with prices ranging from VND40-55 million/m2 in Ho Chi Minh City and from VND30-35 million/m2 in Binh Duong. Most of these projects have completed legal procedures and are progressing rapidly.

Many real estate projects in the Southern region have been offered for sale recently, but purchasing power is still weak. (Illustration photo: D.V)

For the townhouse and villa segment, the research unit recorded 80 projects with a supply of nearly 5,400 units, an increase of 16% over the same period last year. The consumption rate reached 589 units, equal to 11% of the total supply.

DKRA Consulting assessed that the demand for townhouses and villas has shown positive signs of increase compared to the same period last year. However, the overall consumption of the market remains low. The primary price level has not fluctuated much compared to the beginning of the year.

Responding to VTC News, Mr. Vo Hong Thang, Deputy General Director in charge of DKRA Consulting, said that more than 70% of the supply of townhouses and villas is from Ho Chi Minh City and Dong Nai. Due to weak demand, investors have launched discount policies, price reductions, and incentives on opening day to increase liquidity.

"Although the trading volume in the market has improved, I think it will be difficult to have any sudden changes in liquidity in the short term," Mr. Thang said.

Regarding the land segment, DKRA Consulting recorded 91 projects providing more than 7,000 plots, an increase of 11% over the same period last year. The consumption rate reached 362 plots, or 5% of the total supply. Binh Duong is still the place with a fairly abundant land supply, accounting for 52% of the total supply.

DKRA Consulting believes that the land segment with complete infrastructure and full legal documents is still welcomed by investors and residents. The average land price under 50 million VND/m2 in Ho Chi Minh City or under 22 million VND/m2 in the surrounding areas is of most interest to investors.

Investors and home buyers still have a wait-and-see mentality, causing the liquidity of the real estate market to not have a significant rebound. (Illustration photo: D.V)

DKRA Consulting forecasts that in the fourth quarter of 2024, the apartment, townhouse, and villa segment will have better supply as many projects are doing communications to prepare for sale. The supply is mainly concentrated in Ho Chi Minh City and Binh Duong.

DKRA Consulting assessed that the Land Law, Housing Law and Real Estate Business Law will take effect soon and lending interest rates will continue to remain low. These are factors that positively affect market demand. Liquidity and secondary market prices are expected to continue to have positive changes due to the high demand for home purchases at the end of the year.

DAI VIET

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